Mirror Trading: Should You Do It In 2024

By Wilbert S

January 10, 2024   •   Fact checked by Dumb Little Man

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The #1 Forex Trading Course is Asia Forex Mentor

If you’ve had to face the agony of patiently hearing a chatty person at a gathering speak about the fortune he earned trading work in equities or the spectacular returns his unknown investment strategy developers created.

If you’ve been wondering how you can join in on that excitement, the mirror trading platform and mirror investing could be the thing to go.

Please continue reading to learn further about mirror trading platforms as well as their implications.

What is Mirror Trading

Photo: Asia Forex Mentor

Mirror trading platforms use a selection procedure to discover the top and experienced traders. To participate in either of those methods, you must first create your accounts alongside a supported broker, which will then be connected to the signal provider’s profile.

Every time they make a mirror trade, it is also made on your mirror account activity.

By removing oneself from the decision-making process, a mirror trading platform can assist professional investors in avoiding making emotional trading decisions. In addition, dealers can spread their risk by social trading vast majority strategies at the same time.

Before duplicating their technique, you must first comprehend a trader’s trading strategies to determine proper risk parameters. You’ll also have to maintain a tight check on your account to avoid overtrading. Finally, a comparable but less threatening model is employed to copy trading.

How Legitimate Mirror Trading works

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Mirror trading account appeared dating back to the 2000s, and it was first exclusively available only for institutional mirror traders. However, as the digital sphere of trading strategies has grown, mirror trading account has become more accessible to all users.

Mirror trading service is simple to digital trading since computerized automated software allows other traders to establish a mirror on the preferred experienced trader.

This implies that once the method and successful trader have been picked, the mirror trader can relax and watch all trades without having to do anything.

While mirror trading services, social trading, and copy trading are all identical in concept, there are significant variations between them. Only this employs accurate mirror trading systems or mirror trading software to replicate the deal instantaneously for the mirror traders’ accounts.

Making Profits by Mirror Trading

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Mirror trading may be profitable if you link your account with the right mirror trading service tactics.

Furthermore, you’ll never miss any possible profit chances as your trades will be executed automatically when the algorithmic parameters are activated.

The mirror trading concept or copy trading entails the same dangers as regular trading, which indicates that if you’re not cautious, you might lose your investment strategy because some trading technique has been lucrative for several months in a row doesn’t indicate it will remain profitable once you begin using it.

Successful traders create a strategy, stick to it, and never lose sight of their goals. Of course, losses are inevitable for all other traders, but they may be reduced by adopting risk tolerance management concepts such as not taking over 1% of the account in any single transaction.

Tips for Mirror Trading

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#1. Risks Management Plan

The trade market conditions or foreign exchange market changes in a fraction of a second. The market rises one minute and then falls the next.

As a result, you can not tell what will happen next, hence it’s better to get a risk management strategy in place so you can cut the cord when necessary.

#2. Effective Leverage Ratio in Forex Market

Low leverage will provide you with a far greater return in mirror trading. It also reduces the likelihood of a market meltdown significantly. As a result, it’s best to go with a low-leverage strategy. In addition, it is better to have a 5:1 ratio.

#3. Having Multiple Strategies

What if your chosen approach fails to outperform the market? All of your valuables would be put at peril if this happened. It is preferable to select various systems to manage such situations. As a result, you can be sure that your money is secure.

#4. Selection of Trading Strategy

This is among the most important things to keep in mind. A wide range of tactics will be available on several platforms. Only a tiny percentage of them are going to be effective. It’s recommended not to begin without a fundamental understanding of the subject.

As a trader, you must prioritize your requirements and objectives. After making your decision, you can select a pre-existing approach that best meets your needs.

Why Use Mirror Trading

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#1. Save Time

Trading necessitates a significant amount of time and work. Moreover, it is impossible to trade efficiently without a systematic analysis because the stock markets constantly change. Mirror trading diminishes this aspect, allowing new traders to concentrate on their strengths.

#2. Low Effort and Cost

Mirror trading minimizes costs and efforts by delivering a fully prepared investment decision instrument to the clients in which they have to pay the execution charge without needing to spend on any extra service to create an improved investment selection.

#3. Reducing Emotions

The data elements utilized to generate the transaction are analyzed in mirror trading. This removes the emotional component of decision-making. Lack of dynamic control is among the main reasons why several traders fail to succeed in their jobs.

Fear and greed are two sentiments that must be recognized and limited in day trading.

Disadvantages of Mirror Trading

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#1. Control of Portfolio

There’s not much to think about this one because you’re replicating other people’s methods, you won’t be in charge of your situations. Although it can be advantageous at times, it might also be detrimental.

As a trader, you’ll place more faith in the algorithms and the intermediary than your trading inclinations.

#2. Risk Assessment

You can examine and track the future performance of your portfolio in the stock market. You may immediately check if you make money. However, it’s tough to identify the risks caused by achieving the entire profit using mirror trading.

#3. Robustness of Strategies

Several mirror trading methods or copy trading descriptions are only compelling under particular circumstances. They will not guarantee success. A great example is when a system performs well while the market performs well but underperforms in subsequent sideways calls.

Best Forex Trading Course

Ezekiel Chew's Biography
Photo: asiaforexmentor.com

Asia Forex Mentor is considered one of the best forex trading courses. Banks, investment managers, and retail traders are all trained by them.

Ezekiel Chew is considered one of the world’s best FX traders. He is also a keynote speaker, strategic growth counselor, and the CEO and founder of Asia Forex Mentor, in addition to trading. He also works with companies, raises mutual funds, and forms venture collaborations.

Using our “scientific and quantitative” approach to trading, AFM assists large and small firms and retail traders in increasing their ROI and profitability. So whether you’re a rookie trader trying to make an honest living by trading forex, equities, indexes, or commodities, or mutual fund managers with a large AUM looking to boost your ROI, we’ve covered you.

Its high success rate demonstrates that the work they undertake for individuals and businesses like yours is practical.




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Conclusion: Mirror Trading

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Finally, mirror trading or copy trading is a popular approach to obtain brand visibility for various purposes. Whether you’re a complete novice and have some prior expertise makes no difference. This strategy is adaptable to almost any culture or timetable!

Mirroring, however, will not let you transform your spare money into billions and realize all of your ambitions! The fact is, it is subject to the same dangers as conventional trading.

Unless you’re just getting started, don’t risk your cash. Instead, begin by using a sample account to test and understand effective risk management methods. There’ll be no actual money on the line this way.

Mirror Trading FAQs

Is Mirror Trading regulated?

The FCA, AISC, and SEC, are just a few of the finance regulatory bodies throughout the world that govern mirror trading, sometimes referred to as copy trading.

What is a mirror stock trade?

Mirror trading seems to be the practice of copying the transactions in your bank by connecting that to another account run by a person you consider to have been an astute trader. As a result, each trade that the knowledgeable investor makes in their account is repeated or “mirrored” in the one trader’s account.




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Wilbert S

Wilbert is an avid researcher and is deeply passionate about finance and health. When he's not working, he writes research and review articles by doing a thorough analysis on the products based on personal experience, user reviews and feedbacks from forums, quora, reddit, trustpilot amongst others.

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